$******$

Scenario $14$:

Isabella, age $49,$ is a military reservist called to active duty. She takes a $$55,000$ distribution from her Traditional IRA.

Wages: $$40,000$

Interest and Dividend income: $$1,500$

Itemized Deductions: $$13,500$

Allowable deduction for self$-$employment tax: None

Calculate:

The portion of the distribution subject to the $10\%$ early withdrawal penalty.

AGI $($Adjusted Gross Income$)$

Taxable Income

Total Tax Liability